Hampshire housebuilder reveals nearly a quarter of Brits use AI for mortgage advice

A Hampshire housebuilder is warning its buyers to take caution as nearly one in four Brits say they’ve used AI for mortgage advice.

Barratt David Wilson Homes in partnership with TNHG Mortgage Services has shared new research that reveals almost a quarter (24%) have used AI tools for guidance, but only 7% are ‘very confident’ in its accuracy.

A further 23% said they were unsure or hadn’t used AI tools enough to form an opinion. Meanwhile, 21% said they were not very confident due to concerns that AI may overlook details or provide inaccurate information.

People everywhere are increasingly turning to AI for information with popular search tools like ChatGPT boasting over 800 million weekly active users*.

Terry Higgins, Group MD at TNHG Mortgage Services, warns consumers to take caution when turning to AI for financial decisions.

Higgins says: “AI search tools can be helpful for making mortgage jargon and other information more accessible to first-time buyers and homeowners. However, users should be careful especially when it comes to financial decisions. Outputs aren’t always accurate and could be biased.

“A qualified mortgage adviser will look at your full financial picture and will match you with lenders and products that suit your circumstances. They can also explain the full costs involved and guide you through each step of the purchase, which is something AI simply can’t do.”

Survey respondents reported using AI for a range of mortgage-related tasks, including understanding jargon and interest rates, checking how much they can borrow, general homebuying advice and comparing deals.

Terry Higgins comments: “Calculating affordability is one of the most complex parts of buying a house, and there are so many factors at play. While AI can be a good starting point, it’s been known to make mistakes with basic calculations and even hallucinate or invent fake data and numbers. The same applies for things like interest rates – AI can provide a helpful breakdown, but it can’t be trusted to give you accurate, real-time information.

“AI may also miss certain options like deposit‑boosting schemes or equity loans, meaning buyers could miss out on savings that a qualified advisor would highlight. Indeed, buying a new home opens a range of mortgages which aren’t always available to consumers going direct to the lender.”

To help consumers get better responses and protect their information, Terry has issued his top ‘dos and don’ts’ of using AI for mortgage guidance:

Do: Be specific with your prompt

Provide as much non‑sensitive context as possible so the AI can tailor information more accurately (for example: “first‑time buyer,” “10% deposit,” “interest‑only vs. repayment”).

Don’t: Use sensitive personal information

Avoid including details such as your full income, employer, bank details, National Insurance number, credit score, or personal identifiers. These aren’t necessary for AI to give general guidance and could create security risks.

Do: Treat AI as a starting point, not a final answer

Use AI to help you understand terminology, compare general mortgage types, or explore what questions to ask a broker. It’s a good tool for building confidence before speaking to a professional; not a replacement.

Don’t: Ask for direct recommendations

AI cannot account for your full financial picture and may offer incomplete or incorrect advice on products, lenders, or mortgage terms. It should never replace a qualified mortgage advisor. It’s better to use AI for general guidance rather than affordability information, lending criteria, and other points that can change quite often.

For more (human) guidance around different mortgage types, visit this page: https://www.barratthomes.co.uk/the-buying-process/mortgage-types/